Muni Buyers Ignore Trump Tiff in University of California Sale

The University of California sold $2.2 billion of municipal bonds on Tuesday, executing a deal of which a portion had been pulled earlier this year after Governor Gavin Newsom faced off with President Donald Trump over frozen federal research funds.

The deal was upsized by $200 million and yields tightened by as much as 5 basis points compared to preliminary pricing, according to wires viewed by Bloomberg News. Both of those factors are typically indicators of strong demand, signaling investors shrugged off the Trump administration’s attacks.

Still, this week’s bonds carried a higher penalty from debt with a similar maturity ...